Sources: draft financial plan of Russian Railways for 2016 assumes growth rates of 10% without subsidies

MOSCOW, October 23. The draft financial plan of JSC “Russian Railways” (RZD) in 2016, aimed at the consideration of the government, assumes indexation of freight tariffs by 10% and the absence of subsidies. According to the document, 22 billion rubles, the company may receive due to restoration of benefits on the property tax. This was reported by three sources familiar with the project financial plan of Russian Railways.

“We are talking about the indexation of tariffs by 10%. Subsidies are not provided, but assumes restoration of tax benefits on property,” said a Federal official. Another senior official confirmed this information, adding that the return of tax incentives will allow RZD to receive about 22 billion rubles “Exemption for property on carriage activities – about 22 billion rubles”, – he said.

Another source familiar with the draft financial plan of Russian Railways, confirmed these calculations are contained in the document. “The financial plan involves the restoration of tax breaks on the property, but their eventual size is not specified”, – he said.

In RZD this information does not comment.

Tax exemption on the property for the Railways was abolished in 2013, when the rate of tax for the company amounted to 0.4%. Rate increases each year – so in 2014 it amounted to 0.7%, in 2015 – 1%. In 2016 it should rise to 1.3%.

Earlier, the President of the Russian Railways Oleg Belozerov said that the company managed to optimize the needs for the next year and now the level of subsidies is 22 billion rubles, with the indexation of freight tariffs by 10%. Indexation of freight tariffs by 10% supports the Ministry of transport. The Minister of economic development of Russia Alexei Ulyukayev said that the freight can be raised by 10% without subsidies. In turn, the FAS proposes to increase cargo tariffs of the Russian Railways from 1 January 2016, by 5.5%, from 1 July – by 4.2%.